Tag Archives: personal finance

Another post on One Dollar More where I point out some of the best personal finance stories and posts which I have come across in November:

10 Simple Tips for Saving Up a House Deposit

There is no question that there are property deals to be had right now with homes more affordable than in a long time, especially for the first time buyer. But there is a catch. Banks willing to give out mortgages are requiring larger deposits. Check out the 10 Simple Tips for Saving Up A House Deposit from Money Hacker.

Travel Hacking for Noobs: How We Save Hundreds on Airfare, Get Free Accommodation, & Make Money while Overseas

Making Cash From Trash: The Recycled Art of Clare Graham

3 Stocks With High-Quality Growth

Growth is scarce at the moment. About three-quarters of companies in the S&P 500 index have issued financial results for the third-quarter reporting season. Read Jack Hough’s 3 Stocks With High-Quality Growth on Smart Money.

Writing an Awesome Personal Executive Summary

Great post on Financial Fizzle on how to write a great executive summary is to live up to its namesake by providing a short, broad overview of the entire plan. It’s a quick reference to its contents, and many parts of it may be completed even after the rest of the plan is written.

Friday should have been a wonderful day for me: early finish from work had been planned, chance of some good surf, and dinner at home with my wife.

However, it wasn’t to be.

Work royally sucked: it was very, very busy and it was stressful, so much so that I didn’t get to leave work early as I was supposed to do. So busy in fact, that I forgot to move my car from a clearway. I have ended up with a $197 fine which I have no chance of avoiding. So here comes a nasty little expense for my credit card.

Friday was a financial disaster – I really should have stayed in bed.

So here I am, I admit that I was remiss in not moving my car from the clearway (sorry to all the commuters who had to dodge my car) but I’m protesting the egregious size of the fine! $197 for a simple parking offense is excessive. I’m guilty for a parking offense and I will pay it but North Sydney Council are guilty of robbery.

These are the 3 basic areas of personal finance I want to think about in this blog post. If you’re like most people you will think you’re not earning enough, you spend too much and you need to work on giving your money away to church, charity or friends in need.

Earning Money

Doesn’t matter how you phrase it, this is the bringing in of money which means getting a job. Your income, believe it or not is the most important part of the personal finance equation and you have to protect your income if you’re ever going to getting out of dodge.

Spending Money

What do you spend your money on? Groceries, latte’s, rent, loan repayments, fuel, clothes, holidays, miscellaneous expenses. The list goes on and on. The simple truth is that if you are going to be wise with your money you should never be spending more than you earn, nor anywhere close. Dave Ramsey, for instance, would teach that you shouldn’t be spending more than 1/3% of your take home (post tax) pay on home loan repayments otherwise you’ll become ‘house poor’ i.e only able to afford the house but having nothing left over for perks, holidays, little treats and of course giving money.

Giving Money

How do you perform in the giving department? Do you give you charity? Are you generous with your money? Or are you like a lot of people who are sticklers for giving?

In our current struggling global economy, every penny counts. Families and individuals right across Australia are increasingly interested in discovering new ways to save money. Here are my five top ways to save money, which will go a long way in keeping you solvent while still allowing you to enjoy the good things in life.

#1 – Set Yourself a Personal Spending Budget and Goals

The number one way to save money is to have a good understanding of where your money is being spent and to set budgeting goals to meet every month. Many people overspend in certain areas at the beginning of every month and then find themselves short when it comes time to pay bills or other expenses toward the end of the month. They then find themselves overextended, paying for things on credit and living outside of their means. When you set yourself a personal spending budget and set savings goals, you gain a realistic awareness of the money flowing in and out of your bank account, which can help to curb spontaneous emotional purchases and ensure that you are able to fulfill all of your financial responsibilities every month.

#2 – Save Money Regularly

Individuals living outside of their means rarely set aside money in savings for emergencies or large purchases, which can leave them in the lurch when large sums of money are required with little advance notice. A savings goal can help you to live within your means, while still acquiring large sums of money over time that can allow you to enjoy the large luxury purchases that can elevate your standard of living. Setting aside even a small sum every month is better than saving nothing at all. You may be wise to schedule a direct debit to your savings account every month, to ensure that saving is a kept a top priority in your budget.

#3 – Choose a Bank Account that Rewards Savings with High Interest and Low/Zero Bank Fees

Many accounts exist that will pay top dollar for the privilege of your holding your savings. Search out banks that offer a high interest introductory offer, which includes low or non-existent monthly bank fees. You can automatically transfer money from your checking account into saving every month and enjoy watching as your savings steadily increases through interest payments over the months and years.

#4 – Pay Off Higher Interest Debts First

The higher the rate is on your credit card, the more you pay every month in interest on your principle amount borrowed. It stands to reason, therefore, to pay off your highest interest rate debts first. This will allow you to minimize the interest payments you will make on your debt and save money with which to pay off your lower interest cards.

#5 – Save Securely

Deposits of up to A$1 million at all eligible Australian Authorised Deposit-taking Institutions (ADIs) are guaranteed by the Government at no cost. This means that even during tumultuous global economic times, your money will be safe against market fluctuation or the closing of a major financial institution.

What are your top money tips? Leave a comment with your top money saving tip below.

Everyone does it: spending too much money at Christmas is almost as certain to happen as Christmas is. When you are thinking about your loved ones, your family, and your friends, it can be hard to stop spending. Nearly everyone splurges on Christmas, and nearly everyone regrets it by the time the New Year rolls around. If you were one of the many different people who spent too much during Christmas 2008, there are a few different steps that you can take to fix the situation. By following these different tips, you can fix that over spending as soon as possible.

11. Being rich is bad — look at the nasty rich people out there – Nasty rich people are fun for the press to skewer, but there are generous and thoughtful rich people, too. Some people get rich by exploiting other people and clawing or cheating their way to the top; others made their money by having a good idea, persisting, working hard and being lucky. Money does not define your character.

10. If I were rich, I’d be happy, OR Rich people are miserable, and I would be too – There are happy and miserable people at all levels of the socio-economic spectrum. Most people in Australia have the minimal level of material support necessary to not fear for their survival each day. If you are among those people, your happiness is much more dependent on your own patterns of thinking and assumptions about yourself, other people and the world than anything else.

9. I can’t build investment wealth, because I don’t earn enough to save anything – Saving is really difficult in a culture that rewards spending, but it is definitely possible. The easiest way is to have the percentage you want to save “disappear” before you have it in hand. If your company has a retirement plan, invest in it. It is easy to adapt to a 2% withholding from your paycheck, and the savings add up quickly.

8. My boss has a huge house and a fancy car; she’s obviously wealthy – No, she obviously has stuff. Wealth is money that makes money; savings accounts, investment properties, stocks and bonds, etc. Chris Rock jokes that Shaquille O’Neal isn’t wealthy, he’s rich, because he gets money and spends it without investing. The guy who pays him and says, “There ya go, Shaq; buy yourself a bouncin’ new car;” HE’s wealthy!
7. The best investment is my house – Surprisingly, not necessarily. Houses are expensive — besides the mortgage, you pay taxes and you make repairs. Sometimes, renting is a better deal financially. Furthermore, a house is not an investment in the true sense of the word. It doesn’t make money for you.

6. You have to make ($X) to become rich – In order to become rich, you need to earn more than you spend plus more than inflation. That’s all. Remember the stories of the simple-living cleaning woman who left a million dollars to a school or library. It’s happened a few times.

5. Buying items on sale, clipping coupons, etc. can save you a lot of money – ONLY if they are items you honestly would have bought anyway, and you know enough about the usual pricing that you know it’s actually lower than usual, and you didn’t have to spend extra expensive fuel and time getting to where you bought it.

4. Zero-interest loans are great ways to buy a car, appliance, dental work, etc – Why is this company giving money away? It isn’t. Watch for these common hidden charges; they get that interest up front added to the price of the item, there are “fees” that add up to a lot, or you will be slammed with extortionist interest rates if you are a day late on a payment, possibly on the full amount regardless of how much you have already paid off.

3. Credit card debt is too hard to get out of – Aussies are racking up a serious amount of personal debt on credit cards every year. Stop adding more debt to your credit cards by changing the way you spend money and the way you live. Learn to be frugal! Don’t just stay with your current card out of sheer laziness…make a budget and take steps to reduce your existing debt by moving to a new card more suited to your situation. For example, if you don’t clear your credit card balance every month then you’d be better off on one of the low interest credit cards which has the ongoing low rate.
2. I work hard; I deserve to buy this thing, go on this vacation – And you don’t deserve just as much to have a debt-free life and a strong savings account? To measure your worth as a worker by what you spend is a myth perpetuated by companies that make their money by selling things and vacations to those who believe the myth. YOU are not your stuff, and what you deserve has nothing to do with your acquisitions or your wealth.

1. The only way to get rich these days is to inherit, cheat a company, or hit a lottery – This is one of the deadliest myths if you’d like to be wealthy, because it keeps you from doing the small things it takes for you to start acquiring wealth. Start now by buying less or buying it more inexpensively. Pay down the credit card. Save a little in the bank or retirement plan and don’t forget your Super fund. Learn to return to the joy you used to feel in playing outside, talking with friends, or whatever cheap or free activities delighted you as a child – go surfing!; don’t let advertisers tell you how to be happy.